A House panel approved a bill Thursday that could provide relief for some Arkansas farmers facing rising utility costs.The House Revenue and Taxation Committee advanced legislation Thursday that would exempt chicken-breeding houses and other farm structures from sales taxes on utilities. State officials say the cuts would cost about $10 million a year.

The measure would exempt several types of agricultural structures from sales taxes on electricity, natural gas and other utilities. The proposal heads to the House for a vote as legislative leaders are negotiating a package of tax cuts.

Rep. Andrea Lea (R-Russellville) said the legislation is needed to assist farmers who have faced rising energy costs without a rise in income.“It’s going to average out to about $800 (in tax relief annually) per chicken house,” she said. “It’s going to really help the people in our area.”

Despite the professed need, state finance officials have warned that Gov. Mike Beebe’s proposed balanced budget does not include money for additional tax cuts.

Lea said although a representative from the Department of Finance and Administration (DFA) spoke against the bill, there will be room for the tax cut in the budget.

“It will all be worked out in the end when we work on the revenue stabilization act,” she said.The Revenue and Taxation Committee also approved legislation Thursday that would raid the tax on private timberland to help the Arkansas Forestry Commission.